Cryptopay's EU debit card provider has had its Electronic Money Institution (EMI) license revoked, as stated in an email sent to customers on June 22. The company advises EU cardholders to promptly spend or transfer funds from their cards. However, Cryptopay ass ures its users that funds held in accounts on the app remain secure.
Cryptopay had been utilizing UAB PayrNet, a licensed EMI in Lithuania, to offer debit card services to its EU customers. With PayrNet's license being revoked by Lithuania's central bank, there is a possibility that user funds could be temporarily stuck on the card.
The email emphasizes that only funds transferred to the user's debit card would be affected, and the issue does not impact their Cryptopay accounts, which will continue to function normally. To address the situation, Cryptopay advises customers to spend or transfer their funds as soon as possible. This can be done by purchasing cryptocurrencies, withdrawing cash from ATMs, transferring to another card, or making purchases in stores.
Cryptopay assures customers that even if their card stops working, they can still withdraw funds directly from UAB PayrNet. The company is prepared to assist in coordinating this process if needed. While primarily affecting EU users, Cryptopay explains that services for users in the UK have temporarily been shut down to maintain stable operations but are expected to resume within days.
Konstantin Gorin, Head of Support at Cryptopay, expresses confidence in the company's ability to overcome the current challenges, citing previous experiences with banking system crises. Gorin mentions that the team is already working on a new debit card program, with the priority being to support affected customers. The company aims to find a resolution for them and develop a new card program. Cryptopay had previously faced disruptions when debit card issuer Wirecard went bankrupt in 2020, but it later relaunched its program with another provider.
While the crypto debit card industry faces challenges, there are indications that debit card companies are increasingly embracing cryptocurrencies. In March 2023, Mastercard announced its plans to integrate stablecoins into its payment network in the Asia-Pacific region , allowing stablecoins to be accepted regardless of Mastercard's location in the region.
